Intel Cut Chip Capacity At The Worst Possible Time — And Its Stock Paid The Price

ByPeter Cohan,

Senior Contributor.

Intel's stock plummeted 17% after a "stunningly bad strategic decision" to cut manufacturing capacity left it unable to meet a sudden surge in demand for older AI data center CPUs, leading to weak Q1 guidance.

Analysts are highly skeptical, predicting a decade of struggle for Intel due to this missed AI opportunity and the significant challenge of catching TSMC, despite new 18A technology and partnerships.

Intel stock lost 17% of its value last Friday, reported the Wall Street Journal.